Ranch Land Report: Summer 2022
July 1, 2022 - "Where is the Land Market Headed? Inflation, Capital Gains Taxes and the IRS 1031 Exchange? At Mason & Morse Ranch Company, dba RANCH COMPANY, we market a variety of properties across the U.S. including farm, ranch, timber, recreation, conservation, production & lifestyle assets. Our professional agents “Live It to Know It” and offer our clients more than 133 years of experience in land management, real estate sales and marketing. In our previous farm ranch land market report article dated June 1st, 2021, we commented on the Federal Reserve’s “Transitory” view of inflation. Which we now know was far from accurate. We also indicated proposed increases in capital gains tax and changes to the IRS 1031 exchange program, by the Biden administration, were key market drivers to sell, thereby, locking in tax brackets and the 1031 exchange opportunity. These were the common topics in conversations and decision points with clients throughout 2021. Last year we reported the overall, consumer expectations for inflation had risen to more than 4.8%. currently, the annual inflation rate for the United States is 9.1% for the 12 months ended June 2022, the largest annual increase since November 1981, according to U.S. Labor Department data published July 13th, 2022. Inflation has doubled and that figure may continue to increase even with the Federal Reserves “Hawkish” approach to raising interest rates and efforts to drive the U.S. into a recession mild and or otherwise. Throughout last year, buyer demand was very strong across the different farm, ranch and land asset types Mason Morse Ranch Company brought to the market for our selling clients. In fact, 2021 was the best year in terms of gross volume and acres sold since the Ranch Company was founded. We did expect to see strong activity for land and most forms of real estate with a farm, ranch, recreational or conservation characteristics and those expectations were exceeded. " Read more...
